A TRC21 Wrapped Token is hosted on the TomoChain public blockchain, issued by TomoBridge, a subsidiary of TomoChain Pte. Ltd. and backed by an equal amount of the underlying asset or currency. TRC21 rapped BTC, for instance, is a token worth the same as one BTC at any given moment.
TRC21 Wrapped Token stays in your wallet throughout trading, and can be converted back and forth between the native asset and TRC21 Wrapped Tokens at anytime via TomoBridge. So it's almost like trading native assets directly. The proof of reserve is on-chain, which shows the exact 1:1 between minted TRC21 Wrapped Tokens (the TRC21 Wrapped Tokens created) and native assets stored by TomoBridge. When TRC21 Wrapped Token holders redeem their TRC21 Wrapped Tokens for native assets, the TRC21 Wrapped Tokens will be burned. The minting and burning of TRC21 Wrapped Tokens is tracked and verifiable via smart contract on TomoScan.
You need this type of token especially on decentralized crypto exchanges (DEX) or in decentralized applications running on TomoChain public blockchain.
Tokenizing a major coin like BTC on TomoChain allows for much faster and cheaper Bitcoin transactions, enabling a whole host of TomoChain Dapps to integrate and begin using it, that way giving both Bitcoin and TomoChain additional exposure and liquidity.
TRC21 Wrapped Token brings greater liquidity to the TomoChain ecosystem including DEXs powered by TomoX and DeFi applications. Today, the majority of trading volume takes place on centralized exchanges with major coins like BTC, USDT and ETH. TRC21 Wrapped Token changes that, bringing liquidity to DEXs on TomoChain and making it possible to trade many digital assets. TomoChain network processes transactions faster than most of the network on the blockchain industry so trading in TRC21 Wrapped Tokens on TomoChain DEXs is much faster than trading native assets on any other exchanges.
With TRC21 Wrapped Tokens, decentralized applications can now leverage major coin payments like BTC, ETH and USDT in smart contracts for lending protocols, funds, prediction markets, and token sales.
Besides the ability to trade on TomoX, wrapping these original assets into TRC21 Wrapped Tokens bring immense benefits for the holders of those assets and the TomoChain ecosystem in general.
Transfer your TRC21 Wrapped Tokens without the need of holding TOMO in your wallet. This brings a great advantage compared to other interoperability system, i.e. to send WBTC on Ethereum, users still need to hold ETH.
TRC21 Wrapped Tokens could be used as collateral assets in TomoLending — the pure P2P Lending application that can be enabled by any relayer.
Very fast payments using TomoChain as the platform to process transactions that use those TRC21 Wrapped Tokens as payment units.
TRC21 Wrapped Tokens can be sent and received privately using TomoP — TomoChain privacy transaction protocol that protects individual financial privacy while still providing the fastest transaction speed (confirmed within 2–4s) and the great user experience compared to existing privacy coin solutions.
With the use of TomoP and TRC21 Wrapped Tokens, any user could erase entirely their trading history by sending the TRC21 Wrapped Tokens privately to a newly generated address and continuing to trade using that new address.
TRC21 Wrapped Tokens can be used for staking to earn passive enough in some Dapps on TomoChain.
TRC21 Wrapped Tokens can be potentially used in games that are being built on TomoChain by several teams.
TomoBridge currently supports converting between BTC, ETH, USDT, YFI and their corresponding TRC21 wrapped BTC, TRC21 wrapped ETH, TRC21 wrapped USDT and TRC21 wrapped YFI. More tokens on major will be added in the near future.